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http://ijecm.co.uk/ ISSN 2348 0386
IMPULSE BUYING BEHAVIOR: AN EMPIRICAL STUDY ON INDIAN EXPATS IN UAE
Shanmugan Joghee
Associate Professor, Skyline University College, UAE [email protected]
Anil Roy Dubey
Associate Professor, Skyline University College, UAE [email protected]
Abstract
The present paper aims to describe the influence of impulse buying behavior of the expats living in UAE. The objective of the study is to understand the level of impulse buying experiences, based on the attributes of the product and services by the Indian expats in UAE and also to identify the factors that influence the buying behavior. A field survey method was employed to collect information from 500 respondents from the Study area i.e. UAE based on Simple Random sampling. The data is collected through self-designed questionnaire and is analyzed by using Correlation, Henry Garrett Ranking Technique and Multiple Regression. The finding of the study reveals that the variables age, educational qualification, occupation, annual income and features of the product have positive correlation with level of satisfaction towards Impulse buying behavior and the gender has the negative correlation with level of satisfaction. The inference is most of the customers have selected that quality, brand and price as important factors to choose the products and services. The analysis showed that the customers are influenced by Psychological factor as the need to buy products followed by Retail Promotions, Ambience, Infrastructure, Convenience and Safety and Security. According to the analysis, the most important factor for an expat to buy product and services is the psychological factor. Since most of the expats like to take gifts to their families when they going back to their country, this study followed by few implication for future researchers.
Keywords: Impulse, buying behavior, consumer satisfaction, Factors, Correlation
Licensed under Creative Common Page 172 INTRODUCTION
A Spontaneous or unplanned purchase are called as impulse. Among the consumers in UAE, the foreign population or expatriates might be 69%. UAE is the house for many expats. It is known as the 'Dubai stone'. There are several factors that motivate an expat to work in UAE.
They are Recognition, work conditions, achievement, financials, relationship with co-workers, trust from senior management, safety, opportunities for entrepreneurs and professionals, good Public system, Health system, Tax free system vibrant nightlife, Shopping, Multicultural. The daily life in UAE is defined by religion and tradition. The laws and regulations provide a basic conditions between employer and employee in UAE. Here the expats if they are having any issues of working hours and conditions, termination of the work contract, and the obligations of their employer they can refer to the legal authorities. Most of the time the conditions of the work contract would be negotiated based on the work contract.
Objectives of the Study
To understand the level of impulse buying experiences based on the attributes of the product and services by the Indian expats in UAE.
To explore the extent the factors influence the buying behavior of the Indian Expats in UAE.
REVIEW OF LITERATURE
(BaniRshaid, A. M., & Alghraibeh, A. M. 2017) in their study has examined the buying and depressive symptoms among total population consisting male and female. The sample size taken for the study is 744 respondents visiting shopping centers in and around UAE and Abu Dhabi. For the study there were Compulsive buying inventory and Depression inventory developed. The results showed that there is a positive significant relationship between buying factors and depression symptoms. Further the results showed that the female respondents demonstrating higher scores in buying. Bellini, S., & Aiolfi, S. (2017) focused on in store marketing which influences the importance in grocery sector since retailers and manufacturers spend on huge investments for marketing activities to influence the decisions of the customer and generate purchases. The research is based on finding the effect of in store mobile technology used on shopping behavior. The results show that customers using mobile technology are more likely to buy less unplanned items. (Bellini, S., Cardinali, M. G., &Grandi, B., 2017).The authors are depicting the changes happening around the environment like crisis in the economic, increase in penetration of digital technology which have brought magnificent changes in shopping habits which has helped in designing new avenues of buying products
Licensed under Creative Common Page 173 impulsively. (Geetha Mohan, Bharadhwaj Sivakumaran, Piyush Sharma, 2013) Here the authors aim to find the store environment, individual characteristics and tendency of buying which influences impulse buying behavior of the customers. A structured questionnaire is used to collect the data from respondents numbering 733 and also through mall survey conducted in south India. The results obtained from AMOS show that there is positive effect on the environment of the store.(Juan, L. S., &Goninan, S. 2017). Here the authors have focused on retail sectors in Malaysia economy. The study is based on the relationship between the factors and purchase intention of private labels. The quota sampling technique is used for collecting data from 142 respondents. The finding of the research found that there was positive relationship between the factors and purchases intentions of the private labels. (Lai, J.
(2017).Here the study is focused on the main factors which influence online customers purchase decisions on clothing in United Kingdom. It is an exploratory study which speaks about understanding impulsive behavior. The findings showed that there are several factors that affect the impulse behavior of the online customers.(Maria EkStyvén, Tim Foster, ÅsaWallström, 2017)Here the study is characterizedwith consumers having high impulse buying tendency with those who have low impulse buying tendency in buying products online. The data was collected through postal survey for 144 respondents. The results show that most of the women on an average younger are online shoppers as they have high trust on the online shopping. Most of the fashion products are shopped through online.(Mohammad Naquibur Rahman ,2017)The study is based on create g awareness among KSA customers about the products. As most of them cannot go to buy products without understanding the worth of the product. Hence the entrepreneur of KSA need to rethink, readjust and remodel the product as per the KSA customer. (Parsad, C., Prashar, S., & Tata, V. S.,2017). The paper speaks about the influences on factors on the ambiance of the store and impulse buying tendency. Here the research analysis is done through study scales and by preparing validities. Here the results show that there is significant relationship between impulse buying tendency and need to buy through impulse buying. (Prashar, S., &Mitra, S. K.,2017).The authors are focusing on the analysis and compare the various predicting methods which can be used by retailers and marketers for forecasting sales. The statistical tools used are R-3.2.1.The results showed predictive ability of the methods and it is significantly outperforms the logistic regression, linear discriminant analysis, quadratic discriminant analysis and k-nearest Neighbour methods in terms of predicting power. (Rishi, B., &Khasawneh, A. H. M. A., 2017)The authors have designed a conceptual model to find the relationship between purchase intention online and the antecedents of online purchase intention. The results are helpful to the marketers to design a better marketing strategy that influences the purchase intention online of the online customers.
Licensed under Creative Common Page 174 The data collected is from 478 consumers who have validated the model by using factor analysis and multiple regression analysis. The results showed that factors like prior online purchase experience, impulse purchase orientation, quality orientation and online trust have a positive influence on the online purchase intention, but the brand orientation has negative influence on the online purchase intention. Sohn, H. K., & Lee, T. J. (2017) focused on tourists at duty free shops who experience limitations than those who do shopping at general shopping mall. The data was collected from 343 respondents and the results showed that there was significant emotions experienced by tourists, the pressure of time reinforced negative emotions and involvement of direct shopping which increased the cognitive responses. (Vonkeman, C., Verhagen, T., &Van Dolen, W. ,2017).Here the authors have proposed and have tested a model which explains the perceptions of the consumers towards the technologies of product presentations which might affect the impulse buying online. The data is analyzed by using a structural equation modelling. The results brought cognitive and affective responses of the product. (Yeboah, A., & Owusu-Prempeh, V., 2017). Here the author focuses on exploring the impulse buying behavior of the customers through different factors related to the customers and products. Around 179 respondents have been taken for sample study through convenient selection method using reliability statistics, Cramer’s V statistics under a crosstabulation statistical technique test to find the significance between the variables involved in this study.
The findings indicate that there is no strong association between consumer impulse buying behavior and factors of the product.
Research Gap
The earlier studies have focused more on factors of the store ambience and on online shopping of the customers. No much studies on impulse buying behavior of expats living in UAE. About use of methods for analysis, the earlier studies have not used or very less studies have used correlation analysis, Henry Garret Ranking method and multiple regression Analysis.
METHODOLOGY
The paper adopted as descriptive research design. In order to identify the factors that influence Indian Expats buying behavior, a field survey method was employed to collect information from 500 respondents from the Study area i.e., based on Simple Random sampling UAE. The data is collected through self-designed questionnaire. The Statistical tools such as Correlation, Multiple Regression Analysis and Henry Garrett ranking were used for analyzing the data collected.
Licensed under Creative Common Page 175 ANALYSIS
The data collected is analyzed by using Correlation and Henry Garrett Ranking Technique. The level of satisfaction perceived by respondents in buying behavior considered as a dependent variable. The Independent variables selected for the study are Gender, Age, Marital Status, Educational Qualifications, Occupational status, Annual Income and Features of the product.
Table 1. Correlation between Selected Variables and Level of Satisfaction No. Variables Correlation (r)
1 Gender -0050NS
2 Age 0.160*
3 Educational Qualification 0.142*
4 Occupation 0.130*
5 Annual Income 0.140**
7 Features of the product 0.300**
Note: ** Significant at 1 % level *Significant at 5% level NS- Not Significant
From the above table it is inferred that among 7 variables, gender has negative significance with level of satisfaction towards buying behavior. The variables age, educational qualification, occupation show significance at 5% level. The variables like annual income and features of the product show significance at 1% level. Hence it is found that the variables age, educational qualification, occupation, annual income and features of the product have positive correlation with level of satisfaction towards Impulse buying behavior and the gender has the negative correlation with level of satisfaction
Table 2. Features based on satisfactory level of experience with respect to products and services
S.I No Features Total Score Mean Score Rank
1 Price 160 15.09 3
2 Quality 300 19.90 1
3 Brand Name 180 17.10 2
4 Availability of the product 120 11.06 6
5 Design and Packaging 115 8.09 7
6 Promotions 155 13.00 4
7 Discount and offers 125 12.05 5
8 Post sales service 110 7.05 8
Licensed under Creative Common Page 176 From the above table, the quality is the main reason to choose any product as it is ranked as first with the Garrett Score of 300 points. Followed by Brand name, Price with the Garret scores of 180 and 160 points. The other features like promotions, Discount and offers, availability of the product, Design and Packaging and post sales service are placed in the position of third, fourth, fifth, sixth, seventh and eighth respectively. The inference is most of the customers have selected that quality, brand and price as important factors to choose the products and services.
Table 3. Factors that influence impulsive buying behaviour
S.I No. Factors Total Score Mean Score Rank
1 Ambience 3156 14.20 3
2 Convenience 1855 10.05 5
3 Infrastructure 1950 11.50 4
4 Retail Promotions 3256 17.56 2
5 Safety and Security 850 5.50 6
6 Psychological factors 9500 60.50 1
From the table, the customers are influenced by Psychological factor as the need to buy products followed by Retail Promotions, Ambience, Infrastructure, Convenience and Safety and Security. According to the analysis, the most important factor for an expat to buy product and services is the psychological factor. Since most of the expats like to take gifts to their families when they go to visit back to your country.
FINDINGS AND DISCUSSION
The correlation analysis inferred that among 7 variables, gender has negative significance with level of satisfaction towards buying behavior. The variables age, educational qualification, occupation show significance at 5% level. The variables like annual income and features of the product show significance at 1% level. Hence it is found that the variables age, educational qualification, occupation, annual income and features of the product have positive correlation with level of satisfaction towards Impulse buying behavior and the gender has the negative correlation with level of satisfaction.
As per the Garret score, we can find that the quality is the main reason to choose any product as it is ranked as first with the Garrett Score of 300 points. Followed by Brand name, Price with the Garret scores of 180 and 160 points. The other features like promotions, Discount and offers, availability of the product, Design and Packaging and post sales service are placed in the position of third, fourth, fifth, sixth, seventh and eighth respectively. The inference is most
Licensed under Creative Common Page 177 of the customers have selected that quality, brand and price as important factors to choose the products and services.
The analysis showed that the customers are influenced by Psychological factor as the need to buy products followed by Retail Promotions, Ambience, Infrastructure, Convenience and Safety and Security. According to the analysis, the most important factor for an expat to buy product and services is the psychological factor. Since most of the expats like to take gifts to their families when they go to visit back to your country.
IMPLICATIONS & FUTURE RESEARCH
The managers need to invest in improving environment of the stores like designing proper layouts, employees need to be friendly with the customers, playing music that is soothing and well- lit stores.
The strategies that are built for branding needs to be focused oriented towards the expats of the country.
The promotion schemes need to be realistic in nature.
The pricing decisions and distribution network play a widespread role in bringing out products that are not only branded but also of quality oriented.
The overall findings show that the variables age, educational qualification, occupation, annual income and features of the product have positive correlation with level of satisfaction towards Impulse buying behavior and the gender has the negative correlation with level of satisfaction.
Most of the customers have selected that quality, brand and price as important factors to choose the products and services.
Few customers are influenced by Psychological factor as the need to buy products followed by Retail Promotions, Ambience, Infrastructure, Convenience and Safety and Security.
According to the analysis, the most important factor for an expat to buy product and services is the psychological factor. Since most of the expats like to take gifts to their families when they go to visit back to your country. The major suggestion provided is to improve the strategies to enhance branding focused oriented towards the expats of the country. In UAE, the growth of expat population is tremendous due to safety and very good life style. Though comparatively UAE is better positioned than many countries, researching on these area will give substantial chances of improvement in the retail industry, as well as to become benchmark for Middle East region. There are many big events like EXPO 2020 and many structural developments underway, the growth of the country and changing behavioral dynamics inkey domain for researching. Hence, these type of impulse buying behavioral study on expats and the scope for
Licensed under Creative Common Page 178 research in this area is very high. And the frequent innovation in product and service industry, potential growth opportunities for many firms are certainly positive by executing empirical research.
REFERENCES
Bani-Rshaid, A. M., &Alghraibeh, A. M. (2017). Relationship between Compulsive Buying and Depressive Symptoms among Males and Females. Journal of Obsessive-Compulsive and Related Disorders.
Bellini, S., &Aiolfi, S. (2017). The Impact of Mobile Device Use on Shopper Behaviour in Store: An Empirical Research on Grocery Retailing. International Business Research, 10(4), 58.
Bellini, S., Cardinali, M. G., &Grandi, B. (2017). A structural equation model of impulse buying behavior in grocery retailing. Journal of Retailing and Consumer Services, 36, 164-171.
Geetha Mohan, Bharadhwaj Sivakumaran, & Piyush Sharma, (2013) "Impact of store environment on impulse buying behavior", European Journal of Marketing, Vol. 47 Issue: 10, pp.1711-1732,
Juan, L. S., &Govindan, S. (2017). Opportunities of Private Label Brands at Malaysia. Journal of Global Business and Social Entrepreneurship (GBSE), 3(7).
Lai, J. (2017). The comparative research on online impulsive buying behavior between the UK and China. Journal of Residuals Science and Technology, 14(S1), S119-S124.
Maria EkStyvén, Tim Foster, ÅsaWallström, (2017) "Impulse buying tendencies among online shoppers in Sweden", Journal of Research in Interactive Marketing, Vol. 11 Issue: 4, pp.416-431.
Mohammad Naquibur Rahman, New Emerging Buying Trends in KSA Customers Proceedings of 40th International Business Research Conference 9 - 10 January 2017, Flora Grand Hotel, Dubai, UAE ISBN: 978-1-925488-27-2 Parsad, C., Prashar, S., & Tata, V. S. (2017). Understanding nature of store ambiance and individual impulse buying tendency on impulsive purchasing behavior: an emerging market perspective. Decision, 44(4), 297-311
Prashar, S., &Mitra, S. K. (2017). Forecasting impulse buying behavior: a comparative study of select five statistical methods. International Journal of Business Forecasting and Marketing Intelligence, 3(3), 289-308.
Rishi, B., &Khasawneh, A. H. M. A. (2017). Determinants of online purchase intention: a study of Emirati consumers.
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Sohn, H. K., & Lee, T. J. (2017). Tourists’ impulse buying behavior at duty-free shops: the moderating effects of time pressure and shopping involvement. Journal of Travel & Tourism Marketing, 34(3), 341-356.
Vonkeman, C., Verhagen, T., & van Dolen, W. (2017). Role of local presence in online impulse buying. Information &
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Yeboah, A., &Owusu-Prempeh, V. (2017). Exploring the Consumer Impulse Buying Behaviour from a Range of Consumer and Product Related Factors. International Journal of Marketing Studies, 9(2), 146.
